Extension of CARES Act Makes Now an Ideal Time to Buy (and Sell!) A Business
With the recent extension of the CARES Act for 2021, there are a number of significant changes to enhance the incentives for SBA loan borrowers – making the next several months the ideal time to buy, and therefore sell, a business.
With these incentives, there will be a number of buyers looking to make purchases. If you’ve been thinking about selling your business, or even wondering how you might start the process or learn the value of your business, contact us today to confidentially speak with one of our Transition Experts.
Some of the specific highlights include:
SBA payment forgiveness, yes, the government will make your first 6 months payments for loans approved from 2/1 thru 9/30. It will be capped at $9,000 per month. As before, this is not an advance, but actual payment of the loan, worth up to $54,000.
Increases to 90% the loan guarantee amount given to lenders on some loans, including for Community Advantage loans, until October 1, 2021. That’s up from 75%.
Waives lender and borrower fees for some loan programs. This Guarantee Fee typically runs between 2.5 to 3%